U.S. Policy Should Spur Private Investment in Africa

"I think really we've got to realize what China, India, the Europeans, the Arabs already realize: that we've got to have private investment into Africa if we're going to continue a strong U.S.-Africa relationship," he said.
The U.S. government's Export-Import Bank, which aims to decrease risk for U.S. firms selling abroad, provides little assistance for small companies in African markets. The bank provided just $437 million in loan guarantees to Africa-invested U.S. firms in 2008, and most of the recipients were large, stable companies like Exxon-Mobil Corp., Mr. Hayes said.

The China Exim Bank, on the other hand, provided $13.1 billion in guaranteed loans for Chinese companies investing in Africa during 2008, the most recent year for which numbers are available. As a result, U.S. firms are falling behind, even though American investment would be preferred to Chinese in many countries, he added. read more...